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ARCHIMED’s MED II sells DIESSE, returning 4.6x to shareholders
January
27,
2025
ARCHIMED’s MED II sells DIESSE, returning 4.6x to shareholders
Private equity healthcare specialist ARCHIMED announces the sale of DIESSE to private equity firm Fremman Capital. The transaction caps a five-year partnership with DIESSE and marks the latter’s transformation into a leading clinical diagnostics innovator. The deal returns 4.6 times invested capital to shareholders.
Acquired in 2019, DIESSE underwent a transformative journey under ARCHIMED’s ownership, becoming a pioneer in the development of cutting-edge systems for diagnosing and monitoring inflammatory diseases and immune disorders.
The acquisition strategy was born out of ARCHIMED’s MedSeg approach, identifying ImmunoAssays as a prioritized sub-sector within the In Vitro Diagnostics (IVD) space. Screened by ARCHIMED’s Diagnostics Sector Team and recognized as a category leader via the ARCHIMED MedDiscover tool, DIESSE was carved out from the PZ Cormay group and acquired from its five founding scientists.
The transformation of DIESSE was driven by a team with extensive scientific and operational experience in Diagnostics and a newly appointed CEO, Massimiliano Boggetti. Boggetti, the former CEO of Sebia Italy, was sourced through ARCHIMED’s network of MedTalents®. His team was supported by a board of industry veterans who contributed their expertise and invested alongside ARCHIMED. Board members include Roland Diggelmann, previous CEO of Roche Diagnostics; Philippe Chauvin, former Head of research & development at Sebia; and Luc Vierstraete, ex-Global Head of Diabetes IVD at Roche Diagnostics.
ARCHIMED launched several strategic growth initiatives at DIESSE, using its MedValue approach to implement long-term value creation drivers focused on Industrialization, Innovation and Internationalization.
In 2023, DIESSE significantly increased and modernized its production capacity, building the largest In Vitro Diagnostics Devices production and R&D center in Italy and the most modern in Europe. This 25-million-euro facility embodies Industry 5.0 principles, focusing on lean manufacturing and sustainability.
Thanks to substantial investments in R&D, DIESSE is at the forefront of next generation innovative platforms – using algorithms, AI and IoT. This has expanded its range of tests and increased its competitive differentiation through enhanced capacity in various IVD technologies. DIESSE launched three new analyzer platforms, created new allergy and TDM (Therapeutic Drug Monitoring) panels, and developed approximately 170 new tests, all since 2020. The company’s development pipeline should release over 60 new tests in the next 12-18 months.
DIESSE’s global reach increased under ARCHIMED, through new distributors and new subsidiaries in the US, Germany, and Brazil. DIESSE products currently sell in over 100 countries, with international sales accounting for 70% of DIESSE’s 2024 revenues.
ARCHIMED’s goal of building businesses to improve healthcare outcomes has consistently delivered favorable results. The exit of DIESSE demonstrates once again how effective ARCHIMED’s value creation approach can be.
DIESSE was sold – as is typically the case with ARCHIMED companies – in reaction to unsolicited approaches from both strategic and financial suitors. ARCHIMED and DIESSE management are aligned with Fremman’s project, which should benefit all stakeholders.
ARCHIMED’s MED II, the fund which acquired DIESSE, was raised in 2018 and invested in 11 companies through majority buyout transactions. MED II has sold six companies – including DIESSE – delivering 2.0x times invested capital to investors. This is despite the realization of less than half the value of MED II’s initially invested capital.
MED II is ranked in the top 1% of all buyout funds for its 2018 vintage, according to data from Preqin. Its predecessor, MED I, is the best performing buyout fund for its 2014 vintage. MED III is being deployed and the fundraise for MED IV is expected to start by the end of 2025. ARCHIMED was ranked 4th best buyout firm globally in 2023 by Pitchbook and 6th best Buyout firm globally by Dow Jones-HEC for the decade ending in 2020.